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STOCK COMPARISON

Home Depot vs McDonald’s: Fair Value & Quality

Both stocks run through our valuation models. Here is how Home Depot (HD) and McDonald’s (MCD) compare, as of Sep 6, 2026.

As of Sep 6, 2026, Fair Value Calculator sees Home Depot as the less overvalued of the two: Home Depot trades at $321 versus a fair value of $237 (-26%), while McDonald’s trades at $256 versus $149 (-42%).
Home Depot
HD · USD · Consumer Discretionary
-26%
upside to fair value
overvalued
Price$321
Fair Value$237
Quality57/100
McDonald’s
MCD · USD · Consumer Discretionary
-42%
upside to fair value
overvalued
Price$256
Fair Value$149
Quality69/100
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Head-to-head numbers

Green value = the better side for that row (for valuation multiples: lower = cheaper).

Home DepotMcDonald’s
Valuation
24.4×P/E (TTM)21.2×
2.06×P/S (TTM)7.11×
26.72×P/B—
15.5×EV/EBITDA15.8×
1.94×PEG2.56×
−26.2%Fair value upside−41.7%
2.2%Dividend yield2.8%
$6.93Dividend per share$7.26
Profitability
12%Operating margin44%
0.92×EBIT margin trend (5Y)1.21×
128%Return on equity—
13%Return on assets14%
Growth
5%Revenue growth (YoY)9%
1.5%Avg. growth/yr (3Y)5.1%
4.5%Avg. growth/yr (5Y)7.0%
+5.7%Value creation/yr+11.5%
Balance & size
8.7×Interest coverage (EBIT/interest)7.8×
3.62×Debt / equity—
$342BMarket cap$195B
healthyGrowth qualityhealthy

McDonald’s leads: 5 to 8 metric wins.

Dash = not meaningfully computable, for example with negative equity.

Quality in detail

The quality score, broken down into the same factor families as on the stock page, 0 to 100 per family.

Home Depotof which business quality 55 · market factors 41 McDonald’sof which business quality 65 · market factors 41
ProfitabilityMargins and returns on capital today
83
64
Quality GrowthAre margins and returns improving?
30
46
CashflowEarnings quality: real cash, not paper profit
50
76
Fin. StrengthBalance sheet, leverage, solvency risk
34
53
InvestmentDisciplined investing over empire-building
48
57
Low VolatilityCalm price path (market factor)
71
96
MomentumPrice trend over the last 3–12 months (market factor)
33
24
52W MomentumDistance to the 52-week high (market factor)
18
7
Net IssuanceBuybacks instead of dilution
84
91

What the models say

How far the median fair value (base case) per model family sits from the current price, in percent. The amount in the currency of the trading venue is shown underneath.

above the price, more than 15% above close to the price, 85% to 115% of the price below the price, more than 15% below

Model familyHome DepotPrice $321McDonald’sPrice $256
DCF Models-23%below the price$247-54%below the price$117
Earnings-Based-60%below the price$129-60%below the price$102
Dividend Discount-46%below the price$174-62%below the price$98.39
Multiples-29%below the price$227-12%close to the price$225
Asset-Based-97%below the price$8.61n/a
Growth DCF-40%below the price$193-77%below the price$58.72
Economic Profit-60%below the price$128-56%below the price$113
Growth Earnings-11%close to the price$285-18%below the price$209
Minimum-97%below the price$8.61-77%below the price$58.72
Maximum-11%close to the price$285-12%close to the price$225
Median-43%below the price$184-56%below the price$113
Geometric mean-60%below the price$129-53%below the price$121

Minimum, maximum, median and geometric mean refer to the family values in this table. Geometric because deviations are ratios: half the price and twice the price average to 100%, not 125%.

Home Depot: 24 of 26 models see the stock below the current price.

McDonald’s: 19 of 21 models see the stock below the current price.

Scenario ranges

From our cautious bear case to the optimistic bull case. The white tick is the current price: left of fair value means room to run.

Home Depot
Bear $129Fair Value $237Bull $312
$321 = current price (white tick)
McDonald’s
Bear $98.03Fair Value $149Bull $233
$256 = current price (white tick)

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Ranked within their sector

Where each stock sits within its sector peer group. Band = middle 50% of peers, tick = median, dot = this stock.

Home Depot · Consumer Discretionary

Quality score57 · above median
Fair value upside-26% · below median

McDonald’s · Consumer Discretionary

Quality score69 · Top 25%
Fair value upside-42% · below median

Bottom line

As of Sep 6, 2026, Fair Value Calculator sees Home Depot as the less overvalued of the two: Home Depot trades at $321 versus a fair value of $237 (-26%), while McDonald’s trades at $256 versus $149 (-42%).

McDonald’s has the higher quality score (69/100).

See the full analysis →
Home Depot · McDonald’s

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A model-based valuation snapshot from 26 models. Values change with price and fundamentals; the date shown above applies.